More than three-quarters of apprenticeships are delivered by independent training providers, according to new research by the Association of Employment and Learning Providers (AELP).
For the first time, the data highlights how much apprenticeship provision is subcontracted to training providers by colleges. The AELP analysis reveals that overall, 76 per cent of the 499,900 apprenticeship starts in 2014-15 were delivered by training providers. Some 40 per cent of the apprenticeship starts in colleges in this period were actually subcontracted to training providers, according to the research.
Back in November, skills minister Nick Boles told the Association of Colleges’ annual conference that training providers delivered about 60 per cent of apprenticeships, and called on colleges to stop “letting these guys nick your lunch”. He also set colleges a target of increasing the proportion of apprenticeships that they delivered to two-thirds of the total number by 2019-20. But the new research by the AELP, based on data obtained from the Skills Funding Agency (SFA) through a request under the Freedom of Information Act, suggests that the true figure is even higher.
Driving the apprenticeship agenda
AELP chief executive Mark Dawe (pictured) said: “The new data should leave no one in doubt that it is independent training providers who have been driving the apprenticeship agenda. These are the providers who have had the relationships with employers and have been responsive to employers’ needs and the programme’s development.
“Therefore, if the government wants the apprenticeship reforms to work, the key constituency around the table needs to be the ITPs [independent training providers]. Of course, the debate must involve employers, colleges and universities, but if you want to understand how to make an apprenticeship programme work and how to respond to employers’ and learners’ needs, then it is the providers with 79 per cent good or better Ofsted grades and really high employer and learner satisfaction ratings that government and employers should be working with.”
Subcontracting is a ‘complex issue’
Ahead of the levy starting in April 2017, the AELP has called on ministers to ensure that the funding allocation system better rewards the providers that can directly deliver apprenticeship starts for both levy payers and the smaller levy-exempt businesses, rather than through subcontracting arrangements.
“Subcontracting is a complex issue because many partnerships exist for good reasons, such as meeting a need for specialist training, and they serve the employer customer well,” Mr Dawe added. “However, the sheer growth of it over the last 10 years has also happened for reasons that are harder to justify. We know ministers are concerned and we think they know what needs to be done. The new levy system will still require funding allocations within a finite programme budget and it is important that much more of those allocations go to providers who can directly deliver apprenticeships.”
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